AmerisourceBergen Corp. (NYSE:ABC)

Land

Values for land showed relative stability from 2017 through 2020, fluctuating between approximately 39,000 and 44,000 thousand US dollars. A significant increase occurred in 2021, with the value rising sharply to nearly 130,000 thousand US dollars, followed by a slight decrease to approximately 122,000 thousand US dollars in 2022.

Buildings and improvements

The value of buildings and improvements increased from 980,000 thousand US dollars in 2017 to a peak of around 1,086,909 thousand US dollars in 2018. Afterward, there was a notable decline to roughly 587,000 thousand US dollars by 2020. Subsequently, the value rebounded to over 830,000 thousand US dollars in 2021 and stabilized near that level in 2022.

Machinery, equipment, and other

This category exhibited a consistent upward trend across the entire period. Starting at about 2,071,314 thousand US dollars in 2017, the value steadily increased each year, reaching approximately 3,424,070 thousand US dollars by 2022. The largest annual increments were observed in the last two years, suggesting intensified investment in this segment.

Property and equipment, at cost

The total cost of property and equipment rose from around 3,091,205 thousand US dollars in 2017 to about 3,407,908 thousand US dollars in 2018, followed by a slight decrease in 2019 and 2020. A substantial increase occurred in 2021, reaching over 4,081,691 thousand US dollars, and further growth continued in 2022 to approximately 4,387,348 thousand US dollars, indicating a significant expansion in asset acquisitions or capital expenditures.

Accumulated depreciation

Accumulated depreciation consistently increased in absolute terms throughout the period, reflecting ongoing asset aging and use. The balance grew from approximately -1,293,260 thousand US dollars in 2017 to -2,252,345 thousand US dollars in 2022, with steady annual increments signaling systematic depreciation policies.

Property and equipment, net

The net book value of property and equipment showed mixed trends. From a base of about 1,797,945 thousand US dollars in 2017, it increased moderately in 2018 but then declined notably by 2020 to roughly 1,484,808 thousand US dollars. A marked recovery took place in 2021, surging to over 2,162,961 thousand US dollars, followed by a slight decrease to approximately 2,135,003 thousand US dollars in 2022. This pattern suggests that despite substantial additions to property and equipment, accumulated depreciation and disposals have moderated net asset values.

Average Age Ratio

The average age ratio shows a general upward trend from 42.39% in 2017 to 52.81% in 2022, indicating that the property, plant, and equipment (PP&E) are aging over the period. There is a noticeable increase from 2019 to 2020, where the ratio jumps from 47.76% to 54.91%, followed by a slight decline in 2021 to 48.55%, and then an increase again in 2022. This fluctuation suggests some variability in asset replacement or acquisition timing but overall points to a mature asset base.

Estimated Total Useful Life

The estimated total useful life of the assets decreases from 13 years in 2017 to 11 years from 2019 onwards, with a minor anomaly in 2021 where it briefly rises to 12 years before returning to 11 years in 2022. This reduction in estimated lifespan could imply changes in asset composition or a reassessment of asset longevity, possibly indicating a shift toward assets with shorter operational durations.

Estimated Age (Time Elapsed Since Purchase)

The estimated age of the assets remains relatively stable, increasing from 5 years in 2017 through 2019, then rising to 6 years from 2020 onwards. This steady aging reflects a consistent holding period for assets without rapid turnover.

Estimated Remaining Life

The estimated remaining useful life declines from 7 years in 2017 and 2018 to 6 years in 2019, then further to 5 years in 2020. There is a slight recovery to 6 years in 2021, followed by a return to 5 years in 2022. These fluctuations align with changes observed in estimated total useful life and average age, indicating periodic reassessments of asset longevity and possibly reflecting maintenance or replacement strategies.

Property and equipment, at cost

The cost of property and equipment displayed an overall increasing trend from 2017 to 2022. Starting at approximately $3.09 billion in 2017, it rose steadily with a small dip in 2020 to about $3.24 billion, then experienced significant growth in 2021 and 2022, reaching nearly $4.39 billion. This indicates notable investments or acquisitions in property and equipment, especially in the most recent years.

Accumulated depreciation

Accumulated depreciation consistently increased throughout the period, rising from about $1.29 billion in 2017 to approximately $2.25 billion in 2022. This steady rise aligns with the increasing asset base and reflects continuous usage and aging of the property and equipment. The growth in accumulated depreciation also suggests ongoing depreciation expenses recognized each year.

Land

Land values were relatively stable and low compared to total property and equipment cost until 2020. However, in 2021, there was a substantial increase to nearly $130 million, followed by a slight decline in 2022 to approximately $122 million. This spike could indicate significant land acquisitions or revaluations during 2021.

Average age ratio

The average age ratio, representing the average age of the property and equipment relative to their life, exhibited an increasing trend from 42.39% in 2017 to a peak of 54.91% in 2020. It then declined to 48.55% in 2021 before rising again to 52.81% in 2022. This pattern suggests that assets were aging progressively, with a slight rejuvenation or asset replacement in 2021, followed by aging in the subsequent year.

Summary of Trends

Overall, the data reveals that the company significantly expanded its property and equipment base over the six-year span, with marked increases in asset costs and accumulated depreciation. The sharp rise in land value in 2021 stands out as an exceptional event, possibly linked to strategic real estate acquisitions. The average age ratio dynamics suggest ongoing asset aging, punctuated by periods of asset renewal. The combination of increasing asset investment and consistent depreciation indicates an active asset management strategy, balancing acquisition with consumption over time.

Property and equipment, at cost

The value of property and equipment at cost shows a generally increasing trend over the analyzed periods. Starting at approximately $3.1 billion in 2017, it gradually rose each year with a slight dip in 2020, reaching around $4.39 billion by 2022. The notable increase between 2020 and 2021, close to $838 million, indicates significant investment or acquisitions during that year, with continued growth into 2022.

Land

Land values remain relatively stable from 2017 through 2020, fluctuating between $39 million and $44 million. However, there is a sharp increase in 2021 to approximately $130 million, followed by a slight decline in 2022. This jump suggests a major land acquisition or revaluation occurring in 2021, which contributes substantially to the overall rise in property and equipment costs.

Depreciation expense

Depreciation expense exhibits an upward trend throughout the period, starting from about $237 million in 2017 and increasing steadily to nearly $387 million in 2022. The growth in depreciation expense aligns with the increase in property and equipment values, reflecting higher depreciation charges likely due to asset additions. The expense dipped slightly in 2020 compared to the prior year, possibly influenced by asset write-downs or adjustments, then resumed its ascent in subsequent years.

Estimated total useful life

The estimated total useful life of assets shows minor fluctuations between 11 and 13 years. It decreased from 13 years in 2017 to 11 years by 2019, remained stable through 2020, rose slightly to 12 years in 2021, and dropped back to 11 years in 2022. These slight changes might reflect adjustments in asset types or revisions to depreciation policies affecting asset longevity assessments.

Accumulated depreciation

There is a consistent upward trend in accumulated depreciation from 2017 to 2022. The balance increased from approximately 1.29 billion US dollars in 2017 to about 2.25 billion US dollars in 2022. This steady growth indicates continuous depreciation charges on the property, plant, and equipment assets, reflecting ongoing usage and aging of the asset base over time.

Depreciation expense

The depreciation expense shows fluctuations over the analyzed period, starting at roughly 237 million US dollars in 2017 and increasing overall to about 387 million US dollars in 2022. Notably, depreciation expense rose significantly in 2018 and 2019, followed by a slight decline in 2020. After 2020, there is a notable increase in depreciation expense, peaking in 2022. This pattern may highlight changes in asset acquisitions, disposals, or alterations in depreciation policies.

Time elapsed since purchase

The time elapsed since purchase remains relatively stable, increasing gradually from 5 years in 2017 through 2019 to 6 years starting in 2020 and remaining at that level through 2022. This suggests a maturing asset base with limited turnover or asset replacements during the later years, contributing to rising accumulated depreciation.

The financial data reflecting the property, plant, and equipment over the six-year period indicates several notable trends and fluctuations. The net value of property and equipment initially increased from 1,797,945 thousand US dollars in 2017 to a peak of 1,892,424 thousand US dollars in 2018. Following this peak, a consistent decline is observed in 2019 and 2020, reaching a low of 1,484,808 thousand US dollars. However, there is a significant recovery and increase in 2021 to 2,162,961 thousand US dollars, which stabilizes slightly lower but remains elevated at 2,135,003 thousand US dollars in 2022.

Regarding land holdings, the values generally remain stable in the initial years but show a marked increase in 2021, rising from 39,572 thousand US dollars in 2020 to 129,944 thousand US dollars in 2021. This heightened level continues into 2022, with a slight decrease to 122,426 thousand US dollars. This pattern suggests a possible acquisition or revaluation of land assets during 2021, which materially affects the asset base.

The depreciation expense displays a growing trend throughout the period. Starting at 237,100 thousand US dollars in 2017, it rises steadily each year, reaching 386,595 thousand US dollars by 2022. This increase may reflect additional investments in depreciable assets, accelerated depreciation policies, or a change in the asset mix toward items with shorter useful lives.

Examining the estimated remaining life of the property and equipment reveals a gradual decline with slight fluctuations. With a remaining life of 7 years in 2017 and 2018, it reduces to 6 years in 2019, further contracts to 5 years in 2020, recovers marginally to 6 years in 2021, and again decreases to 5 years in 2022. This shortening trend may signal ongoing asset aging, increased turnover, or adjustments in depreciation schedules.

In summary, the net property and equipment asset base experienced volatility with a pronounced dip and subsequent rebound around 2020 and 2021. Land assets exhibited a substantial appraisal increase or acquisitions during 2021, contributing to the overall property asset growth. Depreciation expenses have grown consistently, aligning with the asset base’s dynamics and potentially reflecting asset age and composition changes. The decreasing estimated remaining useful life underscores an aging asset portfolio or shifts in depreciation practices over the examined timeframe.